Equity Release

Our integrity, care and attention to detail in this field is so important to us.

What is Equity Release?

Equity Release is a way to unlock cash that is tied up in the value of your home. To qualify you need to be a homeowner aged 55 and over. Money unlocked through equity release is tax-free and can be spent on whatever you want, this may be helping family get onto the property ladder, updating your home, maybe funding the holiday of a lifetime or repaying an outstanding mortgage.

A Lifetime Mortgage will reduce the value of your estate and may effect your entitlement to means-tested benefits and tax status.

The impact of not servicing monthly interest payments on a Lifetime Mortgage is that the outstanding debt can grow rapidly, thus reducing the value of your estate.

For example, if the interest rate was 7% a year, a £50,000 loan would double to £100,000 after 10 years assuming no repayments are made.

This is an example for illustrative purposes only and personalised advice and recommendations should be sought from a qualified professional. You are strongly advised to register a lasting power of attorney. This will allow your affairs to be managed by somebody else if your mental abilities significantly decline.

If you are thinking about releasing equity in your home, you need to get professional advice from a qualified adviser who is an expert in this field, this is where we can help.

  • Release up to 55% of the value of your home
  • Retain ownership of the property
  • Available to homeowners over 55
  • Use the money for any purpose

All of our advice is unique to you, delivered by fully-qualified equity release experts, who are both accredited later life lending professionals. We take the time to get to know you and your needs to ensure we find and recommend the right outcome for you. Our integrity, care and attention to detail in this field is so important to us.

What Options are Available?

There are 2 main options for releasing equity, a lifetime mortgage or a home reversion scheme. We only advise on lifetime mortgages. Below is a basic explanation of both options:

Lifetime Mortgage

Most people who take out equity release use a lifetime mortgage. You take out a mortgage secured on your property provided it is your main residence, while retaining ownership. You can choose to ring-fence some of the value of your property as an inheritance for your family. You can choose to make repayments or let the interest roll-up. The loan amount and any accrued interest is paid back when you die or when you move into long-term care.  Usually you don’t have to make any repayments while you’re alive, interest ‘rolls up’ (unpaid interest is added to the loan). This means that the debt can increase quite quickly over a period of time.

Lifetime mortgages do now offer you the option to pay all or some of the interest, and some let you pay off the interest and capital.

In addition, many providers offer either a Lump sum Lifetime Mortgage or a Draw down Lifetime Mortgage.

Home Reversion

Sell part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living in the property until you die, rent free, but you have to agree to maintain and insure it. You can ring-fence a percentage of your property for later use, possibly for inheritance. The percentage you retain will always remain the same regardless of the change in property values, unless you decide to take further cash releases. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership.

No Monthly Repayments

On a typical lifetime mortgage, you don’t normally make any monthly repayments. Instead the monthly interest is added to the loan. This is known as a roll-up interest mortgage, where the interest is added and compounded onto the balance of the mortgage. The loan plus interest is then repaid when the last remaining borrower either passes away or goes into long-term care. At this point the property would normally be sold and the mortgage is repaid, any remaining equity then passes to your estate.

While monthly repayments are not normally required, providers now allow you to make repayments to the loan subject to limits and restrictions. This can help reduce the overall cost of the loan and leave more of your estate to your loved ones.

No Negative Equity Guarantee

As a member of the Equity Release Council all of the lifetime mortgages that we recommend come with a NO NEGATIVE EQUITY GUARANTEE, this means you can rest assured that you will never owe more on the loan than the property is worth, so any debt though equity release can’t be passed onto your loved ones, even if the housing market goes down and the loan exceeds the value of the property.

What can you use Equity Release for?

You can release Equity from your home for practically any purpose such as:

  • Repaying an existing mortgage
  • Clearing unsecured loans and credit cards
  • To help with regular bills and living costs
  • Home improvements or essential alterations to keep property ‘age appropriate’
  • Holidays
  • Family Gift
  • Helping children or grandchildren with a deposit for a house
  • Private medical treatment
  • New car
  • Buy a new home

Releasing equity tied up in your property can help fund any of the reasons above, if you are considering equity release, it is important you seek advice from a fully qualified adviser to fully review the options available to you. If you have any questions we would love to hear from you! Our initial chat and appointment is completely free and without obligation.

Take a look at our Equity Release team for more reassurance and details on how to get in touch.

Alternative Options

If you are considering releasing equity in your property, you should alsoconsider the options available. Below are just some of the alternatives that may be available:

  • Downsize to a cheaper property
  • Using cash or other investments
  • Taking out an interest-only mortgage (paying the monthly interest)
  • Asking relatives for help
  • State benefits
  • Taking in a lodger to provide an income
  • Cashing in a pension lump sum



Sphere are passionate about making sure you are looked after in the same way as we would like our families to be.
We take time to find the right Mortgage or Protection Insurance for you and your family and build a solid relationship based on trust.

For our mortgage advice services we will charge a fee with a range between £49 and £499. These fees are as follows:
£499 – Complex Mortgage to include Debt Consolidation or Impaired Credit.
£399 – Standard Residential Mortgage.
£249 – Existing Sphere Financial Services Customer.
£99 – Application for additional borrowing from your current lender.
£49 – Product Transfer application with your current lender.
Our advice fee for an Equity Release Mortgage is £1,395.

The guidance and/or advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.

Sphere Financial Services Ltd is an Appointed Representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products for mortgage and non-investment insurance advice. The Financial Conduct Authority does not regulate some forms of Buy to Let.

Company Registered in England and Wales. Company No. 08214925